Furnishing PAN will be mandatory from Friday for cash transactions such as hotel or foreign travel bills exceeding ` 50,000 – a move aimed at curbing the black money menace.
Besides, PAN will be a must for all transactions, including purchase of jewellery, above ` 2 lakhs in cash or through card with effect from January 1, 2016, the finance ministry said in a notification.
PAN will also be mandatory on purchase of immovable property of over ` 10 lakh. This will be a relief to small home buyers as previously the government had proposed to make PAN mandatory for property worth ` 5 lakh.
Quoting of Permanent Account Number (PAN) will also be mandatory for term deposits exceeding ` 50,000 at one go or ` 5 lakh in a year with banks, Post Offices and NBFCs.
The notification said PAN would be mandatory for payments of more than ` 50,000 for cash cards or prepaid instruments as well as for acquiring shares of unlisted companies for ` 1 lakh and above.
It has also been made mandatory for opening all bank accounts except Pradhan Mantri Jan Dhan Yojana accounts.